Free Washington D.C. Real Estate Practice Exam

Q1.In Washington DC, how long must a real estate broker retain transaction records, including contracts, closing documents, and correspondence related to a completed real estate transaction?

• A.One year from the date of closing
• B.Three years from the date of closing
• C.Five years from the date of closing
• D.Seven years from the date of closing

Q2.Under the D.C. Real Estate Licensure Act of 1982, which government department houses the D.C. Real Estate Commission?

• A.Department of Licensing and Consumer Protection
• B.Department of Housing and Community Development
• C.Department of Consumer and Regulatory Affairs
• D.Office of the Attorney General

Q3.A buyer includes a financing contingency in a purchase contract that requires loan approval within 30 days. On day 25, the buyer's lender denies the loan application. What should the buyer do to properly exercise this contingency?

• A.Automatically receive their earnest money back
• B.Provide written notice to the seller before the contingency deadline
• C.Wait until day 30 to notify the seller
• D.Request an extension from the lender

Q4.A licensed DC real estate salesperson begins working with a buyer who is touring homes. The salesperson has not yet had the buyer sign any representation agreement. Under DC brokerage disclosure requirements, when must the salesperson provide the DC Brokerage Relationship Disclosure to the buyer at the LATEST?

• A.Before the salesperson shows the buyer any property.
• B.At the time the buyer makes a written offer on a property.
• C.At the first substantive contact with the buyer, before any confidential information is exchanged.
• D.Only when the buyer requests the disclosure in writing.

Q5.Before the D.C. Real Estate Commission may revoke or suspend a salesperson's license for a disciplinary violation, what procedural protection must be provided to the licensee under the D.C. Real Estate Licensure Act of 1982?

• A.The licensee must be given notice and an opportunity for a hearing
• B.The licensee's supervising broker must appear before the Commission and testify first
• C.The complainant must obtain a judgment against the licensee in D.C. Superior Court before the Commission may act
• D.The Commission must obtain approval from the Mayor before conducting any disciplinary hearing

Q6.Under DC Code § 42-1703(c) and 17 DCMR § 3902, a DC broker enters into a designated agency arrangement for a single residential transaction in which two salespersons affiliated with the same brokerage represent the buyer and seller respectively. Which statement BEST describes the broker's statutory obligations in this scenario?

• A.The broker automatically becomes a dual agent and must obtain written dual-agency consent from both parties before proceeding.
• B.The broker must provide written disclosure of the designated agency relationship and obtain informed written consent from both the buyer and seller before the designated agents begin negotiating on behalf of their respective clients.
• C.No additional disclosure is required because designated agency eliminates any conflict of interest inherent in the transaction.
• D.The broker may proceed with designated agency verbally as long as the managing broker documents the arrangement internally within 5 business days.

Q7.A property is located within an ADEQ Superfund site area. The seller is unaware of any contamination affecting their specific parcel. The listing agent learned about the Superfund designation from a county map. The agent's obligation is:

• A.None — ADEQ environmental designations are public record and the buyer's responsibility to research
• B.Only disclose if the seller's soil test confirms contamination on the specific parcel
• C.Disclose the Superfund designation to the buyer as a material fact affecting the property
• D.Recommend that the seller test the soil before the agent can list the property

Q8.Under the D.C. Rental Housing Act of 1985, which of the following housing providers is generally EXEMPT from rent stabilization (rent control) requirements?

• A.A landlord who owns a building constructed before 1976 that contains 6 rental units.
• B.A landlord who owns and rents out a single-family home and owns no more than four rental units in the District of Columbia.
• C.A landlord who rents units in a building that receives a federal low-income housing tax credit (LIHTC), regardless of the building's age.
• D.A landlord renting a unit in a building that was built before 1976 and has more than 10 units.

Q9.A licensed broker operates a multi-office real estate company and has recently hired three provisional salespersons who are still completing their post-licensing education requirements. A federal audit reveals that two of these salespersons independently negotiated and executed buyer representation agreements without the broker's prior review, and one salesperson made credit-qualification statements to prospective buyers that steered them away from FHA-insured loan products toward conventional financing — a pattern correlating with the racial composition of the neighborhoods involved. Under federal law and general broker supervision principles, which of the following best describes the broker's PRIMARY liability exposure in this scenario?

• A.The broker faces potential Fair Housing Act liability as a principal because steering by an affiliated licensee acting within the scope of employment is directly imputable to the supervising broker, and the broker's failure to implement adequate supervisory policies constitutes an independent basis for liability separate from the salesperson's individual conduct.
• B.The broker is insulated from Fair Housing Act liability because the salesperson acted independently without the broker's knowledge or authorization, and federal law limits vicarious liability to situations where the broker gave explicit instructions to discriminate.
• C.The broker's primary exposure is limited to RESPA Section 8 violations arising from the referral of buyers to specific loan products, and fair housing liability attaches only to the individual salesperson who made the steering statements.
• D.The broker is liable solely for the unauthorized execution of buyer representation agreements under state contract law, and federal fair housing statutes do not extend vicarious liability to brokers for the independent discriminatory acts of their salespersons.

Q10.Under Washington DC real estate licensing rules, how long must a broker generally retain transaction records, such as contracts, listing agreements, and closing statements?

• A.One year from the date of the transaction.
• B.Three years from the date of the transaction.
• C.Ten years from the date of the transaction.
• D.Records need only be retained until the property is resold.

Q11.An amendment to an already-signed purchase contract is legally effective when:

• A.The listing agent verbally confirms the change to the buyer's agent
• B.All parties sign the written amendment
• C.The buyer signs first — the seller's signature is not needed for amendments
• D.The escrow company receives a copy of the proposed change

Q12.Under federal fair housing laws, which of the following fiduciary duties could potentially conflict with an agent's obligation to avoid discriminatory practices?

• A.Confidentiality of client information
• B.Loyalty to the client's interests
• C.Reasonable care and skill
• D.Accounting for funds received

Q13.In states that follow the doctrine of caveat emptor, what is the seller's primary disclosure obligation?

• A.Disclose all known defects regardless of their significance
• B.Disclose only defects that affect health and safety
• C.Disclose only latent defects that are not readily observable
• D.No disclosure obligation except for federally mandated disclosures

Q14.Under the Fair Housing Act, which statement about familial status discrimination is correct?

• A.Housing designated for seniors (62 and older) is exempt from familial status requirements
• B.Landlords can refuse to rent to families with children if the property has lead-based paint
• C.Pregnant women are not protected under familial status provisions
• D.Landlords can charge additional security deposits for families with children

Q15.A D.C.-licensed managing broker's firm represents the seller in a residential transaction. The buyer's lender is an affiliated business entity in which the broker holds a 15% ownership interest. At settlement, the broker instructs the settlement agent to omit disclosure of this affiliated business relationship on the grounds that the buyer — not the broker — is the borrower and therefore the broker has no RESPA disclosure obligation. The buyer later files a complaint. Under RESPA Section 8 and its affiliated business arrangement (AfBA) disclosure requirements, which analysis is MOST accurate?

• A.The broker's position is incorrect; RESPA's affiliated business arrangement disclosure requirement (12 U.S.C. § 2607(c)(4)) obligates any person who refers settlement service business to a provider in which that person has an ownership interest of 1% or more to provide a written AfBA disclosure to the person being referred, and because the broker's firm is referring the buyer to the affiliated lender — even in the context of a seller's representation — the broker must provide the AfBA disclosure and may not require use of the affiliated lender as a condition of the transaction.
• B.The broker is correct that no RESPA disclosure is required because the broker represents the seller, not the buyer, and RESPA's affiliated business arrangement disclosure obligation runs only between a settlement service provider and its own client, meaning only the lender — not the broker — has any AfBA disclosure duty.
• C.RESPA's affiliated business arrangement safe harbor exempts any real estate broker who owns less than 25% of a settlement service provider from all disclosure obligations, so the broker's 15% interest falls below the threshold triggering any AfBA disclosure requirement.
• D.The broker's omission is excused under RESPA because affiliated business arrangement disclosures are only required when the referring party receives a direct fee or kickback from the affiliated entity at the time of referral; a passive ownership interest alone does not trigger the AfBA disclosure obligation.